Impact on families

Government figures say almost 816,000 families will be better off based on 1.2 million children were in child care in 2016.

128,000 families will get reduced subsidies, including 52,100 earning less than $66,958 a year (mainly due to activity test).

Transitioning to the new Child Care Subsidy system

The Government recognises that the transition from the existing child care system to a new system will be a significant change for Australian families.

The legislation replaces existing child care payments with the Child Care Subsidy and Additional Child Care Subsidy. Families and service providers will have time to adjust to the new model and we are working towards a seamless introduction of new systems and arrangements.

All families who use, or need to use, child care in the future will be kept informed of the progress of the changes and given timely information on how they may be affected.

Centrelink will contact families directly to provide information on current entitlements and how they may change under new arrangements. This may include asking families for additional information, to ensure that they move onto the new payment system smoothly.

Implementation timeline

July 2017

● Some strengthened compliance powers commence

July 2018

● Child Care Subsidy and Additional Child Care Subsidy commence (replacing CCB and CCR)

● Community Child Care Fund commences

● New Compliance Framework commences


● A Post Implementation Review following full implementation will be conducted as part of a formal evaluation of the package.


A range of information resources are available to assist families and providers understand the details of the new package.

For families

For providers

New Child Care Package Factsheet